Dell snags hardware, services deal

Dell Computer on Tuesday said it's getting a shot in the arm from health care organization Kaiser Permanente.

Round Rock, Texas-based Dell announced a three-year contract in which it will be the primary provider of desktop and laptop computers to Kaiser Permanente's nationwide network of 423 medical offices and 30 medical centers. The deal also calls for Dell to provide services such as planning and program management for deploying the technology.

Financial terms of deal were not disclosed.

In total, Dell will provide as many as 95,000 Dell OptiPlex desktop computers and 11,000 Latitude notebook computers.

The win boosts Dell in its battle with rival Hewlett-Packard for PC supremacy. It also helps fuel hopes for a stronger year in computer sales. Analysts expect PC shipments to rise about 8 percent this year, up from a scant increase of 1.5 percent in 2002 and a drop of about 5 percent in 2001.

Dell said its deployment services are designed to cut costs through standardization. Jim DeFoe, vice president of sales for Dell's health care division, also suggested Dell's service personnel will allow Kaiser Permanente's information technology staff to focus on their core job.

"Many of Dell's health care customers need round-the-clock support for their technology, which is often used in critical care situations," said Jim DeFoe, vice president of sales for Dell's health care division. "Dell is also providing deployment services to augment the IT staff that provides technology services to the organization."

Kaiser Permanente is the trade name for several organizations, including the Oakland, Calif.-based, not-for-profit Kaiser Foundation Health Plan. Nationwide, Kaiser Permanente includes about 126,000 technical, administrative and clerical employees and about 11,000 physicians.